Correlation Between Grupo Carso and Inmobiliaria Colonial
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Inmobiliaria Colonial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Carso and Inmobiliaria Colonial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Inmobiliaria Colonial SOCIMI, you can compare the effects of market volatilities on Grupo Carso and Inmobiliaria Colonial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grupo Carso with a short position of Inmobiliaria Colonial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Inmobiliaria Colonial.
Diversification Opportunities for Grupo Carso and Inmobiliaria Colonial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Inmobiliaria is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Inmobiliaria Colonial SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmobiliaria Colonial and Grupo Carso is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grupo Carso SAB are associated (or correlated) with Inmobiliaria Colonial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmobiliaria Colonial has no effect on the direction of Grupo Carso i.e., Grupo Carso and Inmobiliaria Colonial go up and down completely randomly.
Pair Corralation between Grupo Carso and Inmobiliaria Colonial
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.48 times more return on investment than Inmobiliaria Colonial. However, Grupo Carso is 1.48 times more volatile than Inmobiliaria Colonial SOCIMI. It trades about 0.04 of its potential returns per unit of risk. Inmobiliaria Colonial SOCIMI is currently generating about -0.11 per unit of risk. If you would invest 540.00 in Grupo Carso SAB on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Grupo Carso SAB or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grupo Carso SAB vs. Inmobiliaria Colonial SOCIMI
Performance |
| Timeline |
| Grupo Carso SAB |
| Inmobiliaria Colonial |
Grupo Carso and Inmobiliaria Colonial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Inmobiliaria Colonial
The main advantage of trading using opposite Grupo Carso and Inmobiliaria Colonial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Inmobiliaria Colonial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Inmobiliaria Colonial will offset losses from the drop in Inmobiliaria Colonial's long position.| Grupo Carso vs. Chunghwa Telecom Co | Grupo Carso vs. Singapore Telecommunications Limited | Grupo Carso vs. MCEWEN MINING INC | Grupo Carso vs. Perseus Mining Limited |
| Inmobiliaria Colonial vs. Southwest Airlines Co | Inmobiliaria Colonial vs. American Airlines Group | Inmobiliaria Colonial vs. EAT WELL INVESTMENT | Inmobiliaria Colonial vs. SOUTHWEST AIRLINES |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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